ERHC Energy Inc (ERHE)

[Krombacher]

Please note that $7 for HDY is not the same as $7 for ERHE.

We must compare market caps in order to compare apples to apples.

$7 for HDY means about a $1 billion market cap.

A $1 billion market cap for ERHE would be about $1.70.

So $7 for HDY is $1.70 for ERHE.

I think ERHE, given its many diversified properties and an LOI indicating a higher probability of a partner in Kenya and the dropping of the first domino (as opposed to a lower probability without an LOI)...

...can easily be an HDY...

With HDY at about $3.70 now they have a half a billion dollar market cap.

That would place ERHE at about 80 cents.

And what does HDY have that ERHE doesn't have? Tullow.

So all it takes is for a well recognized partner like Tullow in Kenya and ERHE management can exercise its stock options when the stock reaches 80 cents as a result.

Doesn't seem so far fetched does it?

Just one domino.

Krombacher